Housing expert Akhil Patel says the current hot property market is largely due to pent-up demand, which has been growing since the start of the calendar year. But he has a warning for people hoping to sit things out until the market cools off – prices are likely to rise further over the course of the decade. Patel says January and February were some of the busiest months on record for property searches and enquiries about mortgage applications – only coming to a sudden halt as the coronavirus pandemic struck the UK and lockdown measures were imposed.

He said: “There is a lot of positive factors underneath the market that has pushed people into the market and has, therefore, led to an increase in prices because (there is) probably not so much stock on the market for sale, so what is available is being bid up in price.”

Akhil told STV News that in addition to pent-up demand as society started to open back up “we had record-low interest rates, mortgage companies willing to lend and also cuts in stamp duty”. Furthermore, he says it is important that people realise the UK is only around halfway through the current economic cycle.

He said: “Typically, the second half of the cycle, which should unfold in the next few years, tends to be much bigger for the property market and so while there may be a lull after this temporary demand is satisfied, actually the next few years should see pretty strong price increases for property.

“In terms of sort of short-term fluctuations in the property market, winter months tend to be fairly slow because, you know, people are focusing on Christmas – if indeed we have Christmas this year, who knows how that will play out.

“And it may be that as people see prices rising, more stock comes into the marke
t and that might then temper prices a little bit, so next spring could certainly be a decent time to buy.

“But if you are sitting there, awaiting a property crash and thinking that prices will get much cheaper, then I’m afraid I don’t think that’s where we are in the cycle. “In the next 12 months might be as good time to buy as you’ll get for most of the 2020s.”

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